News Releases

To all the members
Name of the Company Daiwabo Information System Co., Ltd.
Representative Hirokazu Matsumoto, President and CEO
(Code No. 9912, First Section of Tokyo Stock Exchange/Osaka Securities Exchange)
Head Office 3-2-5, Hommachi, Chuo-ku, Osaka
Contact person Koyama (Yoshio),
General Affairs Sect.(Public Relations)
PHONE +81-6-6281-9100

Business Alliance between Daiwabo Information System and Tomen Cyber-business, Inc.

Daiwabo Information System Co., Ltd. (DIS(*1), Head Office: Chuo-ku, Osaka; President: Hirokazu Matsumoto) and Tomen Cyber-business Solution, Inc. (TCB(*2), Head Office: Minato-ku, Tokyo; President: Takumi Nishimura) today concluded a business alliance to sell and support TCB's main products of VDSL modems and middleware products through DIS's nationwide business networks.

1.Background of the business alliance
We have more than 70 sales and support bases across the country and market such IT-related products as PCs, servers, peripherals, and software programs as our mainstay. Placing the distribution business of these products at the center of our business, we offer services in system integration that include the construction of intra-company networks through DIS Solution Co., Ltd.,(*3) one of DIS's group companies. We also provide follow-up services such as like kitting, installation, telephone support, maintenance and repair, scrapping of unwanted PCs, and IT education through DIS Technical Service Co.,Ltd.(*4)

We have been searching for partners, because the foundation of a business alliance with companies offering advanced products and know-how will allow the DIS group to propose and provide even more sophisticated products and services.

TCB has been active in the broadband solutions business, in both the business and consumer fields, since it was established in 1996. In the field of business applications, it offers middleware in client server systems and Visual Nexus, which is an Internet multipoint video-conferencing software (TCB's self-developed next-generation Internet video conference system) featuring image and sound of the highest quality. In the field of consumer applications TCB has shown good results by providing solutions to housing complexes for the introduction of broadband and to providers of broadband Internet services by supplying self-developed VDSL modems.

TCB has excellent technology and know-how in the broadband field, but it needs to make strenuous efforts to develop marketing networks that cover the whole country by product and by field, because it was established in 1996 and is relatively new in the market. To overcome this hurdle it has been searching for a partner that has a marketing network nationwide.

Both companies have found that an alliance will help them to grow each business and have decided to conclude a business alliance agreement to offer better products and services nationwide, making the best use of the strengths of each company.

2.Details of the business alliance
(1) DIS will actively market TCB's products, including VDSL modems, across the country as the materials for DIS's advanced proposal-type business, utilizing its network of 15,000 distributors nationwide.
(2) The two DIS group companies, DIS Solution and DIS Technical Service, will back up DIS's marketing activities by establishing call centers especially for TCB's products and by appointing support representatives to provide DIS's customers with services such as introduction, installation, and after-sales maintenance and support.
(3) TCB will provide DIS with know-how by offering product information, educating DIS's sales personnel, and exchanging human resources to upgrade the service level, thereby supporting DIS's marketing activities and upgrading technology within the DIS group.

3.Future schedule
As the first project of the business alliance, the two companies are scheduled to market VDSL products to hotels and to rental commercial buildings and apartments that have not introduced broadband, because TCB's presence in this market is low.

In the future, TCB will develop new products and theme products especially for DIS.

Supplementary comments
(*1) Daiwabo Information System Co., Ltd. (DIS)
· Listed both in the First Sections of the Tokyo Stock Exchange and the Osaka Securities Exchange. (Code 9912)
· The largest independent domestic PC dealer in Japan
· As a multi-vendor with overwhelming power to procure products from major manufacturers of PCs and peripherals, it has the most powerful marketing resources (70 marketing bases and 13 distribution centers nationwide) in Japan.
(*2) Tomen Cyber-business Solution, Inc. (TCB)
· Marketing of High-Growth and Emerging Stocks (Code 2356)
· Development and marketing of products and systems involved in broadband solutions
· Marketing self-developed video conferencing system and SBC tools from Tarantella in the software business. Development and marketing of VDSL products that construct a broadband environment in housing complexes, and products and solutions for broadband providers in the infrastructure business
(*3) DIS Solution Co., Ltd.
· Involved in the system integration business as a DIS group company
· Characteristically able to satisfy such requirements as systems consulting, network construction, introduction, and operation, and maintenance of equipment regardless of the manufacturer. It has obtained ISO9001.
(*4) DIS Technical Service Co.,Ltd.
· Takes charge of the service and support business as a DIS group company with bases across the country from Sapporo to Fukuoka
· Characteristically able to offer high quality support and to provide abundant services regardless of ?the product maker, as well as highly reliable support verified by the acquisition of ISO 9001.
· Conducts personnel-service business, various types of education training-centered IT, and media business such as producing PC information magazines and their content.

Please contact the following people to inquire about this article.
Daiwabo Information System Co., Ltd.
Personnel & General affairs dept.General Affairs Sect.(public relations) Koyama (Yoshio)
Management planning dept. Kimura

May 13, 2004